Real estate commissions are a portion of the sale price that’s paid to real estate agents and brokers who facilitated the purchase or sale of a property. These fees can vary widely by region and firm. Fortunately, there are many ways to cut down on the amount of real estate commission you pay, and this article will cover some of the best ones.

How Much is Real Estate Commission?

The typical Realtor commission is between 5 and 6 percent of a home’s sale price.

This fee is split between the listing agent and buyer’s agent in most residential sales. If the buyer’s agent is a licensed broker, their commission will be slightly higher.

A real estate agent’s commission percentage typically depends on the home’s sale price, so it’s important to know what it is before you sign a contract with an agent. You can find this number in the listing agreement and purchase contract for the property you’re selling or purchasing.

What Is a Real Estate Commission?

Real estate agents are licensed professionals who have taken courses and passed an exam to get their license. They then park their license with a brokerage and receive a fee for every real estate transaction that goes through their firm.

They also are responsible for taking on the legal liability that comes with a real estate transaction. This can include drafting contracts and completing title searches.

What are the average Realtor commissions in different states?

The national average Realtor commission was 5.37 percent in 2022, according to data from Clever, an online real estate agent network. These commissions can vary by state and city, so you’ll want to talk to a Realtor about your specific neighborhood before signing a contract with them.

What Are the Differences Between a Traditional Realtor and a Discount Real Estate Broker?

Traditional real estate agents are licensed professionals who have taken additional courses, passed an exam and received a license. They then park their license with statewide or regional brokerage firms and earn a fee for every real estate transaction that comes through their firm. Click here


Their commission is usually a fraction of the total sale price of the home, depending on the market and what they’re doing to sell it. This fee is split between the listing agent, buyer’s agent and broker in most transactions.

When a broker is responsible for a real estate transaction, they usually keep half of the commission (60/40). In most cases, this split is not favorable and often begins at a low level.


Some brokers offer draws, which are an advance on future commissions that you must pay back in full before receiving them. These can be helpful for newer or less experienced agents who want a more consistent income.

Some brokers offer these draw amounts as a way to help their agents gain experience in the field and start making money before they make a lot of sales, but it’s important to remember that draws are not salary payments and you’ll need to be able to afford them before you decide to take them up. Additionally, it’s a good idea to be aware of the taxes and expenses that can add up in this business, especially as you’re starting out on your own.